Page 399 - Motor Insurance Ebook IC 72
P. 399
Guide for Motor Insurance
Associations, who buys a private Car/ motorized two
wheeler under Hire purchase system or under leasing
agreement and has the sole use of it and pays the
insurance premium, shall be entitled to the discount of
Automobile Association membership, provided he she
is otherwise eligible to receive the discount under the
rules. The name of such Hire purchaser/ lessee is to
be stated the policy.
Q 27. Briefly mention about: A. Vehicles subject to
Lease Agreement B. Vehicles subject to
hypothecation agreement C: Vehicles subject to
higher purchase agreement
Ans: A. Vehicle Subject to Lease Agreement : Policies
and Certificates of Insurance are to be issued in
the name of Lessee only and insurance in the
joint names of the Lessee and Lessor is prohibited.
If Lessor's interest is to be protected it should be
done by the use of Endorsement IMT - 6.
For the purpose of the Personal Accident cover
for the Owner - Driver granted under the policy,
the insured named in the policy would continue to
be deemed as the Owner-Driver subject to
conditions of the policy relating to this cover.
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